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Manufacturing, supply and profit sharing agreement with Agropur MSI, LLC
24 June 2019
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announces it has entered into a manufacturing, supply and distribution agreement with Agropur MSI, LLC ("Agropur"). The agreement grants Agropur an exclusive license to manufacture, supply and distribute OptiBiotix's SlimBiome® weight management technology in the USA, Canada and Mexico.
Founded in 1938, Agropur is a North American dairy industry leader with 8,800 employees and sales of $6.7 billion in 2018. Agropur processes more than 6.2 billion litres of milk per year at its 39 plants across North America and boasts an impressive portfolio of brands and products including Natrel, OKA, Iögo, BiPRO, Agropur Grand Cheddar, Olympic, Farmers, Island Farms, Québon, ISO Chill and Crino.
SlimBiome®, an award winning weight management product, will be supplied by Agropur's Customs Solutions Group (https://www.agropuringredients.com/custom-solutions/) as a specialised functional ingredient. It can be incorporated into a wide range of applications including human nutrition comprising of food and beverages, dairy, dietary supplements and sports nutrition with the exception of extruded product in cereal particulates which is a market segment serviced by Cereal Ingredients, Inc (RNS: 12 December 2017).
This is a strategic step by OptiBiotix to de-risk its supply chain and extend the market reach of SlimBiome® by adding manufacturing in North America. This will extend the commercial opportunity for its patented award winning weight management product into the US weight management market which is estimated to be worth $72 billion in 2019 (source: BusinessWire.com). Partnering with an established player with an extensive reach to companies using high value functional ingredients into their food applications will allow end users to reduce transport and tariff costs while shortening lead-times and granting them access to Agropur's expert advice and capabilities to create value.
Dr. Fred Narbel, Managing Director of OptiBiotix's prebiotics division, commented: "We are pleased to announce the signing of a manufacturing and supply agreement with Agropur. We chose Agropur due to their world leading expertise in manufacturing and distributing specialty ingredients like SlimBiome® and their reputation for supplying high quality products to the food industry. We believe working with Agropur, and similar partners around the world, provides the best opportunity of increasing our global commercial reach and catering to the growing interest we are seeing in SlimBiome® from partners worldwide."
Mike Homewood, VP of Agropur's Custom Solutions Group stated: "The collaboration with OptiBiotix Health is well-aligned with Agropur's goal to bring innovation to our customers. The manufacturing and supply of SlimBiome® is a natural fit within our model of solution-focused ingredients for the food, beverage and nutrition industries. We look forward to collaborating with OptiBiotix Health in the North American market."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
|OptiBiotix Health Plc
Stephen O'Hara, Chief Executive
Contact via Walbrook below
|Cairn Financial Advisers LLP (NOMAD)|
|Liam Murray / Jo Turner / Ludovico Lazzaretti||Tel: 020 7213 0880|
|Geoff Nash / Kate Bannatyne (Corporate Finance)
Camille Gochez (Corporate Broking)
|Tel: 020 7220 0500|
|Walbrook PR Ltd
|Tel: 020 7933 8780 or [email protected]
Mob: 07876 741 001
About OptiBiotix - www.optibiotix.com
OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings science to the development of compounds which modify the human microbiome - the collective genome of the microbes in the body - in order to prevent and manage human disease and promote wellness.
OptiBiotix has an extensive R&D program working with leading academics in the development of microbial strains, compounds, and formulations which are used as active ingredients and supplements. More than twenty international food and healthcare supplement companies have signed agreements with OptiBiotix to incorporate their human microbiome modulators into a wide range of food products and drinks.
OptiBiotix is also developing its own range of consumer supplements and health products. The Company's current areas of focus include obesity, cardiovascular health, and diabetes.
OptiBiotix Health secures significant exclusive licence agreement for OptiBiome
Stephen O'Hara | 01 Apr 2020